Speaker 1: Bloomberg Audio Studios, podcasts, radio News.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Let's take a look at some of the stocks on
Speaker 3: the move today in Europe. I'm James Wilcock with Caroline Hepker,
Speaker 3: and we're joined by Bloomberg reporter Chloe Melly Chloie. Let's
Speaker 3: start a commerce bank. They reported ownings today is their
Speaker 3: latest update, going down well with investors.
Speaker 4: Not super super well.
Speaker 1: So Commas Bank raised its outlook for the year, also
Speaker 1: outlined some new medium term targets and it announced three
Speaker 1: thousand drop cuts. And so all of this comes at
Speaker 1: a very critical time in this UniCredit Commers Bank takeover SAGA,
Speaker 1: because this week Credit took its offer directly to the
Speaker 1: Commons Bank shareholders and so Commas Bank throughout this whole
Speaker 1: takeover SAGA has been banking on the strategy of really
Speaker 1: raising targets, of boosting investor payouts to put the stock higher,
Speaker 1: and through that essentially making a deal more expensive for
Speaker 1: UniCredit and therefore convincing investors that Commons Bank is actually
Speaker 1: better off as a standalone entity. And so so far
Speaker 1: that's actually worked and pushing against unicredits advances.
Speaker 4: But we can see the limits of.
Speaker 1: That strategy today because Commers Bank shares are actually lower
Speaker 1: this morning because some investors are seeing the new targets
Speaker 1: as perhaps a little bit too ambitious. So we're now
Speaker 1: seeing some skepticism and that does play into the hands
Speaker 1: of UniCredit, although unicredits offer is actually really unlikely to
Speaker 1: be taken up by.
Speaker 4: A large number number of commons.
Speaker 1: Bank investors, so we'll be watching out for any developments
Speaker 1: there as well.
Speaker 5: Okay, let's pivot to the airlines industry, so we get
Speaker 5: the last of the big European names reporting today. IAG
Speaker 5: some difficulties there after. We had to Deutsche Left, Tanta
Speaker 5: and France Kerlen talking about fuel bills. What did IAG say, Yeah, it.
Speaker 4: Was very much the same issue for them as well.
Speaker 1: So they expect profit and free cash flow for this
Speaker 1: year to be lower than previously expected because of of course,
Speaker 1: as you mentioned.
Speaker 4: Those higher fuel costs. So it has.
Speaker 1: Submits that it will pay about two billion euros more
Speaker 1: for fuel in twenty twenty six and that leads to
Speaker 1: a total bill of about nine billion euros. And so
Speaker 1: this is as you said, the latest airline in Europe
Speaker 1: to warn about the impact of the Iran war on
Speaker 1: its outlook. A lot of companies that within that sector,
Speaker 1: I've had to cancel flights, They've had to reduce some routes,
Speaker 1: decommission older planes as well, and that happens just as
Speaker 1: they enter the very important, very lucrative summer travel season
Speaker 1: as well. Another important thing to note from IG today
Speaker 1: is that it did say it was exploring opportunities for
Speaker 1: consolidation and that it had been approached by other airlines
Speaker 1: looking to discuss potential options given the current market pressures.
Speaker 4: So that's quite interesting.
Speaker 1: But it seems that investors are a lot more focused
Speaker 1: this morning on the weaker outlook rather than the M
Speaker 1: and A possile abilities laid down the line, and so
Speaker 1: we are seeing the shares quite weak this morning for IAG.
Speaker 4: And finally Ryemetteller falling. What's behind that drop.
Speaker 1: That's a downgrade, So they got downgraded to a neutral
Speaker 1: rating by JP Morgan, and the analysts have also slashed
Speaker 1: the price target on the stock, and the analysts have
Speaker 1: said that Ryan Mattau is finding it quite difficult to
Speaker 1: grow as fast as it would like and that some
Speaker 1: investors have started to question where the Ryan Mettel actually
Speaker 1: has the right product portfolio. They said that the company
Speaker 1: has started to miss its own quite ambitious targets, with
Speaker 1: four misses in the past six months, and the latest
Speaker 1: results actually that we had a few days ago that
Speaker 1: actually did miss estimates. JP Morgan is still positive on
Speaker 1: the outlook for the German defense spending, seeing at least
Speaker 1: five years of really strong growth for Rye Mattau and
Speaker 1: military spending in general is still very much top of
Speaker 1: the agenda for governments around the world because of all
Speaker 1: the geopolitical uncertainty that we have.
Speaker 4: But there is clearly quite a bit of caution around.
Speaker 1: Environmental at the moment, and we can see that reflected
Speaker 1: in weakness in the chase throughout the beginning of this
Speaker 1: year and today as well.
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